PeaceHealth finalizes land purchase for Peace Island Medical Center

PeaceHealth has finalized the purchase of 22 acres for the proposed Peace Island Medical Center.

PeaceHealth has finalized the purchase of 22 acres for the proposed Peace Island Medical Center.

PeaceHealth said funding for the land purchase at 1049 San Juan Valley Road was made possible through a $1.2 million grant received Sept. 24 from the San Juan Island Community Foundation. The property was purchased from the Boe family.

The $1.2 million presented to PeaceHealth represents funds received so far out of more than $8 million pledged. Peace Island Medical Center is expected to cost $30 million; the San Juan Community Hospital Committee is raising through philanthropy one-third of the cost, PeaceHealth is paying the other two-thirds. San Juan County Public Hospital District No. 1, which will close Inter Island Medical Center when Peace Island opens but will continue to operate San Juan EMS, will contribute a little over $1 million a year in property tax revenues for 50 years to subsidize medical care.

Under the agreement, approved in March 2009, PeaceHealth will own the property and the new hospital, and will have full responsibility for the delivery of ongoing patient care, staffing and operations. The 10-bed critical access hospital will include a 24-hour emergency room, an expanded primary care and specialty clinic, and an expanded diagnostic services center.

“Because of the backing and leadership of the San Juan community, this project continues to move forward, on time and on budget,” Peace Island administrator Jim Barnhart said in a press release.

“With our design and building plans well under way, this was a critical next step for us – finalizing the purchase of the property. We can’t thank the many island donors, the San Juan Island Community Foundation and its leadership enough for this support.”

Community Foundation Chairman Charles Anderson said, “Supporting the critical needs of our community is what this foundation is all about. The efforts of this board and so many committed community members means that generations of island residents and visitors will have expanded access to some of the best medical services and providers in the Northwest, right here on San Juan Island. We will continue to support this project through ongoing fund-raising efforts over the next two years.”

This year, hospital proponents accomplished the annexation of the 22-acre property into the Town of Friday Harbor, obtained a Certificate of Need from the state Department of Health confirming the need for the hospital, and selected an architect and a construction firm.

The current medical staff and services from InterIsland Medical Center will move to Peace Island Medical Center when it opens, scheduled in summer 2012. Groundbreaking is scheduled for spring 2011.

“From the outset, this has been a community-driven effort,” Hospital District Chairwoman Lenore Bayuk said in the press release. “This grant speaks volumes about this community and the many individuals and families who share our vision for expanding the quality and scope of healthcare services available to all Hospital District residents and visitors.”

San Juan County Public Hospital District 1 is a tax-supported agency that provides clinic-based medical services and 24/7 urgent care services at the InterIsland Medical Center in Friday Harbor. It also operates San Juan Island EMS, which provides emergency medical services, critical care transport, and injury and accident prevention programs. The district is comprised of San Juan Island, the Town of Friday Harbor, Brown Island, Henry Island, Johns Island, Pearl Island, Speiden Island and Stuart Island.

PeaceHealth is a Washington-based not-for-profit healthcare system serving multiple rural and urban communities in Washington, Oregon and Alaska. Visit

For more information about the hospital project, visit